Buying an exchange-traded fund (ETF) can be a great way to gain diversified exposure to a specific sector, industry group or investment theme. You can buy a whole basket of individual stocks with just one click of the mouse (or tap of the finger).
For instance, in May, I recommended my Cycle 9 Alert readers make a bullish play on the SPDR Biotech ETF (NYSE: XBI).
I wanted them to have exposure to the entire biotech space during its search-for-a-vaccine rally. And even though a viable vaccine has yet to be announced, we rode that rally for a net gain of 113% in just two months! (Note: We bought options on the ETF.)
Of course, while buying a diversified ETF will give you exposure to a broad sector, industry group or theme you could instead buy only the ETFs top stocks.
That is, if you have a method for determining which of the ETFs individual stock holdings are top, and which are not.
This way, youll filter out the companies that will drag down the ETFs overall performance!
And thats what my new ETF X-Ray is all about.
Ill run each of the individual stock holdings of a popular ETF through my six-factor Green Zone Ratings model showing you which ones are top-rated and which may be best to avoid.
Lets get straight to it with todays ETF X-Ray!
Global X manages the Global X Cloud Computing ETF (Nasdaq: CLOU). This fund company focuses on disruptor sector ETFs for its investors.
Ive seen Global Xs president speak at the Inside ETFs conference Ive attended the past two years. I really like that this suite of ETFs gives investors access to some of the most innovative and cutting-edge investment themes out there right now including Internet of Thingsand cloud computing (CLOU).
These Digital 2.0 technologies are growing at double-digit rates and driving innovations across multiple sectors. And Global Xs suite of disruptor-sector ETFs is a great way to gain one-click access to them.
That said, lets take an X-Ray look at the Global X Cloud Computer ETF through the lens of my six-factor Green Zone Ratings model.
The table below shows the ETFs individual stock holdings, along with the Overall Rating theyve earned on my six-factor model.
Note that Im presenting two tables
The left side is sorted by the weight that each stock holds in the ETF. The stock at the top (Zoom, ZM) has the largest allocation of the ETFs assets.
The right side is sorted by my rating systems Overall Rating, so its easy to spot which stocks are top-rated.
Youll see the two largest holdings in Global Xs cloud-computer ETF are Zoom Video Communications (ZM) and Twilio (TWLO), with each stock making up over 6% of the ETFs holdings.
As I see it, these are companies that benefit from functionality that cloud computing affords and not necessarily pure-play cloud companies.
Whats more, while both are hyped glamour stocks (and are having great years!) they arent as proven as the likes of Amazon (AMZN), Alphabet (GOOGL) and Microsoft (MSFT), all three of which rate higher than Zoom and Twilio on my quality, value and volatility factor ratings.
Otherwise, one company you may not have heard of before is SPS Commerce (Nasdaq: SPSC). Its barely grown out of the small-cap category, with a market cap of just $2.7 billion.
SPS Commerce offers supply-chain management software solutions on the cloud. And though its a lesser-known name, its growing like gangbusters earnings-per-share are up 78% annually for the past three years!
This cloud-leveraging company is certainly worth a close look.
One last thing a plug for the cloud-computing consultant I just recommended yesterday in my Green Zone Fortunes newsletter.
This global-leader tech consultant is an expert in all things Digital 2.0, not just the cloud. And Amazon selected this company as a Premier Partner of its market-share leading AWS cloud platform, making it the go-to choice for any company wanting to get onto the cloud.
Frankly, I was shocked to find this company isnt a holding of the Global X Cloud Computer ETF it rates an 87 overall on my Green Zone stock rating model, and my two-year profit target for the stock is 80% above current prices.
Stay tuned! Ill have details for how you can sign up to get that pick and many more in the coming days!
To good profits,
Adam ODell, CMT
Chief Investment Strategist,Money & Markets
See the original post:
The Top Green Zone Stocks in This Tech Disruptor Sector - Money and Markets
- How Do You Define Cloud Computing? - Data Center Knowledge [Last Updated On: May 3rd, 2017] [Originally Added On: May 3rd, 2017]
- RCom arm in tie-up for cloud computing - Moneycontrol.com [Last Updated On: May 3rd, 2017] [Originally Added On: May 3rd, 2017]
- Roundup Of Cloud Computing Forecasts, 2017 - Forbes [Last Updated On: May 3rd, 2017] [Originally Added On: May 3rd, 2017]
- Cloud Computing Continues to Influence HPC - insideHPC [Last Updated On: May 3rd, 2017] [Originally Added On: May 3rd, 2017]
- 5 Cloud Computing Stocks to Buy - TheStreet.com [Last Updated On: May 3rd, 2017] [Originally Added On: May 3rd, 2017]
- Adobe bets big on cloud computing for marketing, creative professionals - Livemint [Last Updated On: May 3rd, 2017] [Originally Added On: May 3rd, 2017]
- Red Hat's New Products Centered Around Cloud Computing, Containers - Virtualization Review [Last Updated On: May 3rd, 2017] [Originally Added On: May 3rd, 2017]
- Verizon sells cloud services to IBM in 'unique cooperation between ... - Cloud Tech [Last Updated On: May 3rd, 2017] [Originally Added On: May 3rd, 2017]
- Hospital CIOs see benefits of healthcare cloud computing - TechTarget [Last Updated On: May 3rd, 2017] [Originally Added On: May 3rd, 2017]
- How Cloud Computing Is Turning the Tide on Heart Attacks - Fortune [Last Updated On: May 3rd, 2017] [Originally Added On: May 3rd, 2017]
- What is Cloud Computing Technology?: Cloud Definition ... [Last Updated On: May 3rd, 2017] [Originally Added On: May 3rd, 2017]
- Daily Report: Cloud Computing Asserts Itself - New York Times [Last Updated On: May 4th, 2017] [Originally Added On: May 4th, 2017]
- Verizon sells cloud services to IBM in 'unique cooperation between two tech leaders' - Cloud Tech [Last Updated On: May 4th, 2017] [Originally Added On: May 4th, 2017]
- CIOs embrace the value of cloud computing in healthcare - TechTarget [Last Updated On: May 4th, 2017] [Originally Added On: May 4th, 2017]
- Heptio's Joe Beda: Before embracing cloud computing, make sure your culture is ready - GeekWire [Last Updated On: May 4th, 2017] [Originally Added On: May 4th, 2017]
- CLOUD COMPUTING Cisco Expands Cloud IoT Services with $610M Viptela Acquisition - CIO Today [Last Updated On: May 6th, 2017] [Originally Added On: May 6th, 2017]
- A prepaid wallet that helps start-ups access cloud-computing services - The Hindu [Last Updated On: May 6th, 2017] [Originally Added On: May 6th, 2017]
- Google: No to Price War Over Cloud Computing - Investopedia [Last Updated On: May 6th, 2017] [Originally Added On: May 6th, 2017]
- 3 things to know about the cloud v. data center decision - ZDNet [Last Updated On: May 8th, 2017] [Originally Added On: May 8th, 2017]
- OpenStack Foundation cites 'capabilities, compliance and cost' as Summit kicks off - Cloud Tech [Last Updated On: May 9th, 2017] [Originally Added On: May 9th, 2017]
- Profit From Cloud Computing Boom With This ETF - Seeking Alpha [Last Updated On: May 9th, 2017] [Originally Added On: May 9th, 2017]
- Autonomous Driving Market Focuses on Artificial Intelligence and ... - PR Newswire (press release) [Last Updated On: May 9th, 2017] [Originally Added On: May 9th, 2017]
- The cloud computing tidal wave - BetaNews [Last Updated On: May 9th, 2017] [Originally Added On: May 9th, 2017]
- Aruba predicts a hybrid future for edge and cloud computing - The Internet of Business (blog) [Last Updated On: May 9th, 2017] [Originally Added On: May 9th, 2017]
- China Says Draft Rules on Cloud Computing Have Been Misunderstood - Wall Street Journal (subscription) [Last Updated On: May 9th, 2017] [Originally Added On: May 9th, 2017]
- Oracle launches cloud computing service for India | Business Line - Hindu Business Line [Last Updated On: May 11th, 2017] [Originally Added On: May 11th, 2017]
- Microsoft is on the edge: Windows, Office? Naah. Let's talk about cloud, AI - The Register [Last Updated On: May 11th, 2017] [Originally Added On: May 11th, 2017]
- IBM touts its cloud platform as quickest for AI with benchmark tests - Cloud Tech [Last Updated On: May 11th, 2017] [Originally Added On: May 11th, 2017]
- Enterprise-owned data centres still 'essential' despite cloud growth, research notes - Cloud Tech [Last Updated On: May 11th, 2017] [Originally Added On: May 11th, 2017]
- You really should know what the Andrew File System is - Network World [Last Updated On: May 11th, 2017] [Originally Added On: May 11th, 2017]
- Microsoft launches Android app to manage its Azure cloud computing platform - Android Police [Last Updated On: May 11th, 2017] [Originally Added On: May 11th, 2017]
- 3 Cloud Computing Stocks To Buy Right Now - May 10, 2017 ... - Zacks.com [Last Updated On: May 11th, 2017] [Originally Added On: May 11th, 2017]
- Virtustream Adds Enterprise Cloud to Global Dell EMC Partner Program - Cloud Computing Intelligence (registration) (blog) [Last Updated On: May 13th, 2017] [Originally Added On: May 13th, 2017]
- Trump signs cybersecurity executive order, mandating a move to cloud computing - GeekWire [Last Updated On: May 14th, 2017] [Originally Added On: May 14th, 2017]
- Cloud Computing, Term of Art Complete Preakness Works - BloodHorse.com (press release) (registration) (blog) [Last Updated On: May 14th, 2017] [Originally Added On: May 14th, 2017]
- IBM Announces The Defense Calculator And A Cloud Computing Service - Forbes [Last Updated On: May 14th, 2017] [Originally Added On: May 14th, 2017]
- Achieving compliance in the cloud - CSO Online [Last Updated On: May 17th, 2017] [Originally Added On: May 17th, 2017]
- Boston schools CIO Mark Racine takes hybrid approach to cloud computing - EdScoop News (press release) (registration) (blog) [Last Updated On: May 17th, 2017] [Originally Added On: May 17th, 2017]
- Benefit-risk 'tipping point' for cloud computing now passed, says ... - Out-Law.com [Last Updated On: May 17th, 2017] [Originally Added On: May 17th, 2017]
- Cloud Computing puts in work for Preakness before deluge - Daily Racing Form [Last Updated On: May 17th, 2017] [Originally Added On: May 17th, 2017]
- How telecom is shifting its strategy to support cloud computing - SiliconANGLE (blog) [Last Updated On: May 17th, 2017] [Originally Added On: May 17th, 2017]
- Cloud computing - Simple English Wikipedia, the free encyclopedia [Last Updated On: May 17th, 2017] [Originally Added On: May 17th, 2017]
- How Alphabet Views the Cloud Computing Price Wars - Market Realist [Last Updated On: May 18th, 2017] [Originally Added On: May 18th, 2017]
- Keying Longshot Cloud Computing in the Preakness - America's Best Racing [Last Updated On: May 18th, 2017] [Originally Added On: May 18th, 2017]
- Microsoft Extends Cloud-Computing Arms Race to Africa - Fox Business [Last Updated On: May 18th, 2017] [Originally Added On: May 18th, 2017]
- Firms Face Decelerating Cloud Spending: Analyst - Investopedia [Last Updated On: May 20th, 2017] [Originally Added On: May 20th, 2017]
- Is edge computing set to blow away the cloud? - Cloud Tech [Last Updated On: May 20th, 2017] [Originally Added On: May 20th, 2017]
- Microsoft Extends Cloud-Computing Arms Race to Africa - Wall Street Journal (subscription) [Last Updated On: May 20th, 2017] [Originally Added On: May 20th, 2017]
- Rested and ready: 13-1 shot Cloud Computing wins Preakness - Fairfield Daily Republic [Last Updated On: May 22nd, 2017] [Originally Added On: May 22nd, 2017]
- Watch Cloud Computing's thrilling come-from-behind finish at the Preakness Stakes - For The Win [Last Updated On: May 22nd, 2017] [Originally Added On: May 22nd, 2017]
- Cloud Computing wins the 142nd Preakness Stakes in front of a record crowd [Photos] - Baltimore Business Journal [Last Updated On: May 22nd, 2017] [Originally Added On: May 22nd, 2017]
- 13-1 shot Cloud Computing edges Classic Empire, springs upset in Preakness - News3LV [Last Updated On: May 22nd, 2017] [Originally Added On: May 22nd, 2017]
- Cloud Computing Wins Preakness Stakes, and Techies Are Stoked - Fortune [Last Updated On: May 22nd, 2017] [Originally Added On: May 22nd, 2017]
- Cloud Computing wins Preakness Stakes, dashing Always ... [Last Updated On: May 22nd, 2017] [Originally Added On: May 22nd, 2017]
- Cloud computing, Galeria Inno and change at Deka - Delano.lu [Last Updated On: May 23rd, 2017] [Originally Added On: May 23rd, 2017]
- Roundup Of Cloud Computing Forecasts, 2017 - Enterprise Irregulars (blog) [Last Updated On: May 23rd, 2017] [Originally Added On: May 23rd, 2017]
- Cloud Computing Does Not Need Help From Washington - Cramer's ... - Seeking Alpha [Last Updated On: May 23rd, 2017] [Originally Added On: May 23rd, 2017]
- CTOvision Assessment on The Megatrend of Cloud Computing - CTOvision (blog) [Last Updated On: May 23rd, 2017] [Originally Added On: May 23rd, 2017]
- Cloud Computing's Trainer Wins One for His Mentor at Preakness - New York Times [Last Updated On: May 23rd, 2017] [Originally Added On: May 23rd, 2017]
- Make sense of edge computing vs. cloud computing | InfoWorld - InfoWorld [Last Updated On: May 23rd, 2017] [Originally Added On: May 23rd, 2017]
- Cloud Computing Takes the Preakness - RFD-TV [Last Updated On: May 23rd, 2017] [Originally Added On: May 23rd, 2017]
- Cloud Computing takes Preakness - CNN.com [Last Updated On: May 23rd, 2017] [Originally Added On: May 23rd, 2017]
- Make Sense of Edge Computing vs. Cloud Computing - Linux.com (blog) [Last Updated On: May 26th, 2017] [Originally Added On: May 26th, 2017]
- How will cloud computing and analytics affect Citrix shops? - TechTarget [Last Updated On: May 26th, 2017] [Originally Added On: May 26th, 2017]
- Red Hat to acquire cloud computing firm - Triangle Business Journal [Last Updated On: May 26th, 2017] [Originally Added On: May 26th, 2017]
- Cloud computing streamlines oil field monitoring - Williston Daily Herald [Last Updated On: May 26th, 2017] [Originally Added On: May 26th, 2017]
- Fans should appreciate Cloud Computing's Preakness win - ESPN [Last Updated On: May 26th, 2017] [Originally Added On: May 26th, 2017]
- Cray Takes the Plunge into Cloud Computing - TOP500 News [Last Updated On: May 28th, 2017] [Originally Added On: May 28th, 2017]
- Baidu to leverage cloud computing, artificial intelligence, in effort to ramp up behavioural analysis - South China Morning Post [Last Updated On: May 28th, 2017] [Originally Added On: May 28th, 2017]
- Cloud computing will change the nature of hospital IT shops - Healthcare IT News [Last Updated On: May 28th, 2017] [Originally Added On: May 28th, 2017]
- Microsoft's weapon in high-stakes cloud-computing battle with Amazon? Freebies - The Seattle Times [Last Updated On: May 28th, 2017] [Originally Added On: May 28th, 2017]
- Amazon Shares Hit $1000, Showing Dominance of E-Commerce, Cloud - The VAR Guy [Last Updated On: May 30th, 2017] [Originally Added On: May 30th, 2017]
- Oracle set to expand cloud reach with Tencent alliance - South China Morning Post [Last Updated On: May 30th, 2017] [Originally Added On: May 30th, 2017]
- Cloud Computing to Skip Belmont as Field Comes into Focus - America's Best Racing [Last Updated On: May 30th, 2017] [Originally Added On: May 30th, 2017]
- Movers: Amazon's Stock Price Hits $1000 - New York Times [Last Updated On: June 1st, 2017] [Originally Added On: June 1st, 2017]
- Mary Meeker: Healthcare technology is booming thanks to cloud computing and wearables - SiliconANGLE (blog) [Last Updated On: June 1st, 2017] [Originally Added On: June 1st, 2017]
- Will Amazon's Web Services Business Get Hurt by Cloud Computing Commodification? - HuffPost [Last Updated On: June 1st, 2017] [Originally Added On: June 1st, 2017]
- Box CEO Aaron Levie: Artificial intelligence to revolutionize cloud computing - MarketWatch [Last Updated On: June 1st, 2017] [Originally Added On: June 1st, 2017]
- Cloud computing takes off as top new discipline on campus - Education Dive [Last Updated On: June 1st, 2017] [Originally Added On: June 1st, 2017]
- CIOs and factors overlooked when changing your cloud - Cloud Tech [Last Updated On: June 3rd, 2017] [Originally Added On: June 3rd, 2017]